Why Did Wage Inequality Decrease in Mexico after nafta?

Contrary to what happened before nafta , wage inequality in Mexico de - creased after 1994. This paper investigates the forces behind the post- nafta de - crease in wage inequality. Using a quantile decomposition, I show that the decline in wage inequality is driven by a decline in the returns to ed...

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Detalles Bibliográficos
Autor principal: Raymundo M. Campos-Vázquez
Formato: Editorial
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2013
Materias:
Economía y Finanzas
Keywords
wage inequality
Mexico
education
employment
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32329969001
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329969001oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-32329969001oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
Keywords
wage inequality
Mexico
education
employment
spellingShingle Economía y Finanzas
Keywords
wage inequality
Mexico
education
employment
Raymundo M. Campos-Vázquez
Why Did Wage Inequality Decrease in Mexico after nafta?
topic_facet Economía y Finanzas
Keywords
wage inequality
Mexico
education
employment
description Contrary to what happened before nafta , wage inequality in Mexico de - creased after 1994. This paper investigates the forces behind the post- nafta de - crease in wage inequality. Using a quantile decomposition, I show that the decline in wage inequality is driven by a decline in the returns to education and potential experience, especially at the top of the wage distribution. Supply and demand are the main contributors to this change. On the supply side, there were substantial increases in college enrollment rates after 1994, which translated into an increase in the proportion of workers with a college degree. However, this increase in sup - ply was not met by an increase in demand for the highly educated: the proportion of the workforce in top qualified occupations and close to the top occupations did not increase as much as the increase in supply. As a result, college educated work - ers exercised wage pressure in top and less-than-top qualified occupations. A Bound and Johnson (1992) decomposition confirms that changes in relative sup - ply are the main determinant behind the decrease in wage inequality.
format Editorial
Editorial
author Raymundo M. Campos-Vázquez
author_facet Raymundo M. Campos-Vázquez
author_sort Raymundo M. Campos-Vázquez
title Why Did Wage Inequality Decrease in Mexico after nafta?
title_short Why Did Wage Inequality Decrease in Mexico after nafta?
title_full Why Did Wage Inequality Decrease in Mexico after nafta?
title_fullStr Why Did Wage Inequality Decrease in Mexico after nafta?
title_full_unstemmed Why Did Wage Inequality Decrease in Mexico after nafta?
title_sort why did wage inequality decrease in mexico after nafta?
publisher Centro de Investigación y Docencia Económicas, A.C.
publishDate 2013
url http://www.redalyc.org/articulo.oa?id=32329969001
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32329969001oai
work_keys_str_mv AT raymundomcamposvazquez whydidwageinequalitydecreaseinmexicoafternafta
bdutipo_str Repositorios
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